26.02.2025 14:13
The CEO of Tether (USDT), the world's largest stablecoin issuer, Paolo Ardoino, claimed that his company, which has a market value of $142 billion, is being pushed out of the cryptocurrency market by competitors and politicians. Ardoino stated that the true aim of his competitors is to "kill Tether," adding, "Every action they take or political meeting they hold ends with this intention."
Tether has a market value of $142 billion, which is more than double the $56 billion value of Circle's USD Coin (USDC). However, the company was removed from the list of 10 firms approved to issue stablecoins under the European Union's Crypto Asset Markets (MiCA) regulatory framework and is facing issues with being listed on major exchanges.
Paolo Ardoino: Tether Faces the Threat of Extinction
Tether CEO Paolo Ardoino claimed in a post on X (formerly Twitter) dated February 25 that his competitors' business model focuses on trying to erase Tether from the market and even destroy it, rather than developing better products. "I will leave it to you to describe the attempt of a competitor to use legal warfare to kill off a rival instead of focusing on better products," he emphasized.
The stablecoin issuer stated that it will continue to focus on its mission to promote global financial inclusion, especially in underdeveloped economies. Ardoino noted that USDT is used by over 400 million people and gains 35 million new wallets each quarter.
Ardoino's comments came after Tether was removed from the list of firms approved to issue stablecoins under the EU's MiCA regulatory framework. According to Patrick Hansen, Senior Director of EU Strategy and Policy at Circle, the list includes Banking Circle, stablecoin issuer Circle, Cryptocom, Fiat Republic, and many other firms.
With the MiCA regulations set to come into effect by the end of 2024, Tether is facing increasing challenges and pressures. Cryptocurrency exchange Kraken announced that it will delist five stablecoins, including Tether's USDT, starting March 31. Another major exchange, Cryptocom, also confirmed that it will remove USDT and nine other stablecoins from its platform starting January 31, 2025.
MiCA could pose "systemic risks" for stablecoin issuers, considering that banks can lend up to 90% of their reserves. Ardoino expressed his concerns in an interview, stating, "If you have 10 billion euros under management, you need to put 6 billion euros into cash deposits. We know that banks can lend 90% of their balance sheets as credit."